Correlation Between BioNTech and Thor Industries
Can any of the company-specific risk be diversified away by investing in both BioNTech and Thor Industries at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BioNTech and Thor Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioNTech SE and Thor Industries, you can compare the effects of market volatilities on BioNTech and Thor Industries and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BioNTech with a short position of Thor Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioNTech and Thor Industries.
Diversification Opportunities for BioNTech and Thor Industries
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between BioNTech and Thor is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding BioNTech SE and Thor Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Industries and BioNTech is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BioNTech SE are associated (or correlated) with Thor Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Industries has no effect on the direction of BioNTech i.e., BioNTech and Thor Industries go up and down completely randomly.
Pair Corralation between BioNTech and Thor Industries
Given the investment horizon of 90 days BioNTech SE is expected to under-perform the Thor Industries. In addition to that, BioNTech is 1.06 times more volatile than Thor Industries. It trades about -0.01 of its total potential returns per unit of risk. Thor Industries is currently generating about 0.04 per unit of volatility. If you would invest 7,297 in Thor Industries on September 20, 2024 and sell it today you would earn a total of 2,903 from holding Thor Industries or generate 39.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioNTech SE vs. Thor Industries
Performance |
| Timeline |
| BioNTech SE |
| Thor Industries |
BioNTech and Thor Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioNTech and Thor Industries
The main advantage of trading using opposite BioNTech and Thor Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioNTech position performs unexpectedly, Thor Industries can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Thor Industries will offset losses from the drop in Thor Industries' long position.| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
| Thor Industries vs. Marine Products | Thor Industries vs. Malibu Boats | Thor Industries vs. Brunswick | Thor Industries vs. LCI Industries |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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